Retirement Planning: This is What You’re Doing Wrong

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Main takeaways from this article

Start planning your retirement:

1. Speak to a professional: When starting to think about making a retirement investment plan, it’s worth speaking to an advisor.

2. Keep your investment costs low: Planning for retirement means sa ving money for the long term, so choose a low-cost option.

3. Allow automatic investing do the hard work for you: The best way to save money is to regularly and automatically save a little by setting up a direct debit to an investment platform.

4. Keep it simple: Work with people you trust.

5. Start small and start now: There is no reason why you can’t save a very healthy retirement pot. And the trick to doing it is to start small but start as early as you can.

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Retirement planning doesn’t have to be complicated. Here’s our simple beginner’s guide that should get you on the road to future financial security.

It’s a harsh reality of life – few of us are saving enough for our retirement. Even fewer actually have a retirement investment plan in place.

If you’re planning to retire from work at 60, you need to save a large amount of money. But few people know the best way to go about building a nest egg like this.

At Sarwa, we’re committed to helping our clients achieve their financial goals and we know that retirement is an important one, whatever their age.

We’re not doing enough

A 2017 report from HSBC – titled ‘The Future of Retirement’ – turned up some worrying findings. Among them, a mere 44% of responders in the UAE feel they’ll be “comfortable in retirement”. Further, a whopping 63% are planning to work into retirement in order to fund their lifestyle.

Those two trends are worrying. Firstly, it shows that people accept they might have to lower their quality of life when they retire. Secondly, almost two-thirds of retirees are expecting to have to work past the point they hoped to be winding down. It seems that the number of people who will be able to afford retirement at 60 is dwindling.

Sure, our generation is expected to live longer than most other generations, especially in the UAE. But sacrifices – the quality of life and the age of retirement – are coming about because of inadequate planning. With that in mind, it’s reassuring to know that there is another, better way.

Make a plan

The easiest way to set yourself up for an enjoyable retirement is to make a plan. And the key to any plan is to put it into action as early as possible.

In a future blog post, we will dig deeper into the specifics of making a retirement investment plan. But here are 5 simple steps you can take today that will start you on the road to a happy and secure retirement:

Speak to a professional – When starting to think about making a retirement investment plan, it’s worth speaking to an advisor. At Sarwa, we can help. So arrange a call with us by clicking here. We can then begin putting place plans for saving for your retirement.
Keep your investment costs low – Planning for retirement means sa ving money for the long term. Hence, the less money that gets eroded by fees, the better. So choose a low-cost option.
Let automatic investing do the hard work for you – The best way to save is to make saving a habit. And habits become unbreakable when you forget that you’re doing them. Hence, the best way to save money is to regularly and automatically save a little. And the easiest way to do this is by setting up a direct debit to an investment manager or investment platform.
Keep it simple – With plans that you want to keep for years, it pays to keep it simple. So, when you think about a retirement plan, pick investments you understand, learn a little about what you’re investing in, work with people you trust.
Start small but start now – Tall trees grow from small seeds – and that’s so very true of investing. There is absolutely no reason why you can’t save a very healthy retirement pot. And the trick to doing it is to start small but start as early as you can.

Sarwa can help

The good news is that this 5 point plan can easily be enacted with the help of Sarwa. We help people of all ages in the Middle East save and invest for the future. Our platform reduces the amount of time and money that you need to spend managing your money. You can open an account with us in less than 10 minutes and we match you with a personalized portfolio of diversified, low-cost funds, using automated rebalancing to help you save for your long term goals, such as retirement.

Ready to invest in your future?

Start now

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